METRO INC. announced Wednesday its results for the third quarter of Fiscal 2026 ended July 4, 2026.
2026 THIRD QUARTER HIGHLIGHTS
- Sales of $6,970.4 million, up 1.4%
- Food same-store sales down 1.5%
- Pharmacy same-store sales up 4.8%
- Net earnings of $211.3 million, down 34.6% and adjusted net earnings of $262.6 million, down 20.9%
- Fully diluted net earnings per share of $1.00, down 32.4% and adjusted fully diluted net earnings per share of $1.24, down 18.4%
- Estimated lost profit and direct cost impact of the ongoing labour conflict at our produce distribution centre in Laval of $66 million after-tax or $0.32 per share (results are not adjusted for this impact)
- Retail and distribution network non-recurring restructuring expenses and impairment of assets totaling $42.6 million after-tax ($0.20 per share) expected to generate recurring annual net earnings improvement of approximately $15 million ($0.07 per share) by the end of Fiscal 2028 (results are adjusted for these charges)
- Returned $154.1 million to shareholders through share repurchases
- Opened five stores in the quarter
“Our third quarter results were significantly impacted by the ongoing labour conflict at our produce distribution centre in Laval. We continue to execute our contingency plan and our Quebec stores are generally well stocked. I want to thank our teams for their outstanding resilience and their relentless focus to deliver the best possible shopping experience to our customers during this challenging period. We remain committed to reaching a negotiated agreement that recognizes the contribution of our employees. As much as the strike is having a significant temporary impact, we must preserve the long-term competitiveness of our operations and our ability to continue serving our customers effectively in a competitive market. We will not compromise on this objective. While our food business continues to face this headwind in the fourth quarter, we are pleased with the continued strength of our pharmacy business and with our discount acceleration plan which is on track and delivering good results.
“As previously announced, I will retire as CEO at the end of this fiscal year and become Chairman of the Board. It has been an honor and a privilege to lead METRO and to work alongside such talented and dedicated teams across our stores, distribution centres and offices. Alongside my Board colleagues, I look forward to METRO’s continued success under Marc Giroux’s leadership and I am confident that the company will continue to deliver long-term value to customers, employees and shareholders,” said Eric La Flèche, President and Chief Executive Officer.
The company said sales in the third quarter were positively impacted by new store openings, but were unfavourably impacted by the ongoing labour conflict at its produce distribution centre in Laval and its consequences on its food retail network in Quebec.
“The strike at our produce distribution centre in Laval is ongoing. After four weeks in the fourth quarter, our food same-store sales are down 1.5%. Given that we do not have a clear resolution timeline for this conflict, we expect that our fourth quarter results will continue to be significantly impacted,” said the grocery store chain.
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